Dutch cabinet to widen wealth tax, pulling hundreds of thousands into box 3 from 2028

Leaked cabinet talks reveal that the Dutch government intends to broaden the box 3 wealth tax, adding hundreds of thousands of taxpayers starting in 2028. The reform retains a 36 % rate on an assumed return but reduces the tax-free allowance to €59,357 per person and moves to tax unrealised gains annually, except for shares, which will be taxed only upon sale after demands from parties such as JA21. The tax-free borrowing ceiling for owners of private limited companies will fall from €500,000 to €100,000, while a four-year cut to tax on profit distributions is designed to encourage withdrawals.

Projected revenue of almost €500 million is earmarked for income-tax relief, though the exact method remains undecided. Planned cuts to social security have been abandoned, prompting the FNV union to resume negotiations with the cabinet. Finance minister Eelco Heinenis will present details ahead of the budget debate, seeking opposition backing for the minority government.